Bhubhaneshwar, Odisha
Jindal Steel & Power Ltd (JSPL) having a steel capacity of 3 MnT along with 9 MnT Pellet plant is struggling to run plant on the background of Iron ore issues.
Sarda Mines, which produced about 7 MnT in FY14 and used to be the major source of ore for Jindal Steel, has been closed since April, 2014 owing to lack of necessary clearances.
JSPL’s Tensa Mines is operational but has a capacity of 2 MnT pa against total requirement of about 13-14 MnT.
As per the market source, JSPL has started sourcing the key raw material from market. Source, who has recently supplied Iron ore fines to JSPL at market price, has confirmed it.
Market participants mentioned that if the operation of Sarda Mines did not start within a month, it will take a major hit on JSPL’s operation.
Current offers for Fe 62/63 Fines are hovering in the range of INR 2,700-2,800/MT ex-mines, including royalty.
Iron ore supply in odisha has been disturbed since the Apex Court had suspended mining operations for the mines running under 2nd deemed renewal.
Market participants anticipated that there will be short supply of Iron ore fines, if JSPL speed up their purchases from the open market.
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